India-based hotel company Oyo Rooms announced Wednesday that because of a drop in revenue of up to 60 percent due to the coronavirus pandemic, the company will furlough employees in the U.S. and "select other markets" for a minimum of 60 to 90 days. The company provided neither a number nor a percentage of affected employees, nor did it specify the markets outside the U.S. that will be affected.
CEO Ritesh Agarwal promised the Indian government that employees in India will not be furloughed, nor will they have their salaries reduced, during the country's three-week lockdown period, which began March 25. The company did not elaborate on whether there will be furloughs following that period, but it did note that "it is not considering job cuts at any location at this time, despite significant economic pressures."
In a transcript of a video produced by the company for employees, Agarwal said that health care benefits for those employees on leave or furlough will continue.
As BTN reported, Agarwal is foregoing his salary for the remainder of the year. In addition, members of the company's senior leadership team have taken a minimum 25 percent pay cut, with some volunteering for 50 percent cuts.
The furloughs come just three months after the company laid off thousands globally in a restructuring.
"As you all know, this situation of Covid-19 comes at a very unique time for Oyo," Agarwal said in the video. "Due to [its timing after the restructuring], I want to clarify for all of you that we intend to do no or negligible layoffs as a part of cost restructuring across the world."
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